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In
Australia, and around the world, Kellogg is the undisputed leader in
ready-to-eat breakfast cereals. In
1997, the Australian market was valued at over $650 million. In 1998 Kellogg had
the largest share of the Australian ready to eat cereal market at approximately
45%. Kellogg
Australia is the largest single purchaser of rice in Australia - more than 8,000
tonnes per year, the largest purchaser of Australian sultanas (2,000 tonnes);
and each year buys more than 30,000 tonnes of whole corn (maize), making Kellogg
the largest purchaser of Australian corn for food production. Special corn
hybrids developed by grain breeders in association with Kellogg and their
suppliers ensure high product quality. The company also buys many other
Australian-grown grains, fruits and nuts. With
the consumption of ready-to-eat breakfast cereals steadily increasing, Kellogg
continues to lead the trend towards better health and nutrition. To meet this
growing demand and maintain its commitment to quality, nutritious breakfast
cereals, Kellogg worldwide spends more than $70 million (US) a year on research
and development. Kellogg
Australia has invested $400 million over the past 10 years to further develop
its Botany plant. |
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For
almost 75 years, Kellogg has led the Australian ready-to-eat cereal market. In
1997, over 19.6 million packets of Kellogg’s Corn Flakes were consumed.
Today, Kellogg’s share of market includes 7 out of the top 10 breakfast
cereals in the country. Kellogg is proud of the fact that 96% of our
breakfast cereal products are proudly made in Australia by Australians,
from good, wholesome Australian-grown grains, fruits and nuts. Kellogg Australia
leads in exports too. With 22 Australian made breakfast cereals exported into 16
countries. Kellogg’s
commitment to buying quality ingredients combined with the company’s
commitment to nutrition research and development has led to the introduction of
new breakfast cereals. Kellogg’s
Sustain, developed in conjunction with the Australian Institute of Sport, was
produced specifically for Australian athletes to provide energy to keep them
going. In
1997 Kellogg launched Crispix to cater to the consumer need for a fun, health
orientated good tasting cereal. By 1998 it was an $8 million dollar brand. Soon
after, Kellogg introduced three more good tasting, highly nutritious cereals
including Golden Wheats, Just Right Just Grains and All-Bran Soy ‘n Fibre. Kellogg
also holds the majority share in the health oriented convenience food market
with Kellogg’s Cereal Bars, Rice Bubbles Treats, Coco Pops Bars and Pop Tarts. |
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From
the very beginning Kellogg cereals were founded on good health principles. In
1880, Will Keith (WK) Kellogg went to work for his brother, Dr. John Harvey
Kellogg, superintendent of the internationally famous Seventh Day Adventist
Battle Creek Sanitarium in Michigan USA. Whilst
developing a nutritious cereal food for his patients in 1894, a freak laboratory
accident resulted in wheat flakes. The
patients loved this new flaky cereal product, and demanded supplies, even after
leaving the sanitarium. Soon
after, the Kellogg brothers opened their first wheat flakes factory in Battle
Creek. From wheat flakes to corn flakes was a simple process, and in 1906 WK
started up his own company to market them. The
company was called The Battle Creek Toasted Corn Flake Company, but this soon
changed to the simpler Kellogg Company. By now, the sanitarium’s success with
its flake products had spawned up to 42 imitations from local rivals. To avoid
confusion with his competitors products, WK had his name and signature scripted
on each package of Kellogg’s Corn Flakes, along with the explanation “The
original has this signature.” By 1909, more than a million cases of
Kellogg’s Corn Flakes were sold across the US. International
expansion became inevitable and in 1924, Kellogg Australia was founded and began
operations from rented premises in Sydney. In
1928 Kellogg Australia moved to their newly built factory located at Botany.
Over the years the Botany factory has been expanded several times. Today,
the Kellogg Company has operations in 17 different countries, employs over
l7,000 people world-wide and distributes its products in 130 countries. |
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Nutritionists
the world over agree that breakfast is the most important meal of the day.
Research shows that people who eat breakfast tend to have less anxiety and
improved memory. Children who go to school without breakfast have more trouble
concentrating and their school work can suffer as a result. Regular breakfast
eaters also have better diets and generally enjoy better health. Nutritionists
recommend that a good breakfast should supply about one quarter to a third of a
person’s daily nutritional needs. Kellogg’s breakfast cereals help to do
just that, providing a range of products with nutrients such as carbohydrates,
fibre, and essential vitamins and minerals. A significant number of Kellogg’s
cereals also contain Niacin, Vitamin B6, Riboflavin (B2), Thiamin (Bl), Folate,
Zinc and Iron. |
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Innovation
has always been the key to Kellogg’s success. In 1998 Kellogg launched Just
Right Just Grains. The
launch of Kellogg’s Crispix, Golden Wheats and All-Bran Soy ‘n Fibre was
next. Crispix attained a 1.6% value share and Golden Wheats took 0.4% value
share. Kellogg’s
major cereal brands increased share of market during l998, boosted by on-pack
consumer promotions plus important on-pack messages about good nutrition and
community involvement. Kellogg’s
is committed to the environment and has a long record of environmentally
responsible practices. More than two billion Kellogg packages a year display the
“Recycled” symbol. Kellogg packaging, of course, is also recyclable. Kellogg
also cares about the community and has developed major sponsorships with
Kids Help Line, Surf Life Saving Surf Safe Summer Program and Life
Education Centre. |
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A
man ahead of his time, WK Kellogg realised that promotion was vital to growing
his brand. In 1906, he invested in an ad in The Ladies Home Journal with
astounding results. Sales grew from just 33 cases a day to 2,900. Spurred
on by this success, WK embarked on a series of sales promotions. Kellogg was
also one of the first companies to use free gifts or premiums in or on pack. By
1911, Kellogg’s had spent $1 million on advertising - a huge sum in those
days. The
Kellogg Company was swift to use TV. In the early 60s, Kellogg's first
Australian TV advertisement appeared, promoting Kellogg's Corn Flakes. Since
then Kellogg's has maintained a consistent presence on Australian TV. In
1930, WK gave up a large proportion of his shares to set up the WK Kellogg
Foundation, to “help people help themselves.” Over
the years, the foundation has contributed over one billion dollars to projects
in health, education, agriculture, leadership and youth. Every year, it supports
up to 400 different projects worldwide and is one of the largest private
philanthropic organisations in the world. Kellogg has voluntarily involved
itself in promoting several areas of fitness, health and safety, perhaps the
most significant being its support of the Australia Surf Life Saving movement.
Kellogg’s sponsorship includes financial assistance for Surf Life Saving Clubs
around the country, plus Surf Safe Summer messages printed on over 15 million
packs going into 75% of Australian homes. To
help teenagers cope with depression and the turmoil of adolescence, Kellogg’s
sponsorship of Kids Help Line was launched in 1998. Australia's only free, 24
hour, anonymous and confidential telephone counselling service for kids aged 5
to 18, the Help Line receives an average of 30,000 calls a week. Kellogg
takes pride in being a socially responsible corporation and is committed to
taking a leading role in projects that advance and improve the health of the
Australian community and environment. |
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In
the far-sighted words of the Kellogg founder, WK Kellogg, “We are a company of
dedicated people making quality products for a healthier world.” One
of those products, Kellogg’s Corn Flakes, has enjoyed a long history of
popularity based on its taste and high nutritional value. Driven by the belief
that cereals can provide an integral part of our diet, Kellogg's Corn Flakes
continue to win over the hearts and minds of today's increasingly
health-conscious consumers. A
key reason is Kellogg’s corporate culture.
A culture that's a direct reflection of Kellogg's four corporate values.
Profit and Growth. Investment in
People. Quality in Everything. Social Responsibility. It
is through these values that the original vision of WK Kellogg continues to
thrive, with an on-going commitment to quality breakfast cereals that are
nutritious and an ever-increasing commitment to the future health of the nation. |
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| Kellogg was the first to print recipes, product information and nutrition
messages on the side and back panels of its cereal packages. |
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| A key to WK Kellogg's success in the breakfast cereal industry was the
emphasis he placed on advertising. Even when Wall Street collapsed in 1929,
Kellogg doubled its advertising budget. |
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The Australian operation was the first Kellogg facility to be established
outside of America. |
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The first box of ready-to-eat cereal to roll off the Kellogg production
line in 1906 was packaged in recycled paperboard.
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